In the rapidly evolving landscape of smart buildings and real estate management, artificial intelligence (AI) is proving to be a game-changer, according to a comprehensive review published in the journal *Digital Engineering* (translated from German as “Digital Engineering”). The study, led by Chinwe Emedo from the Faculty of Business and Law at De Montfort University in Leicester, UK, systematically analyzed peer-reviewed articles and industry reports from 2016 to 2024. The findings highlight significant improvements in energy efficiency and sustainable operations driven by AI technologies.
Emedo and her team examined five primary domains: property valuation, predictive maintenance, tenant screening, marketing and sales, and smart building operations. The results are impressive. AI-powered systems have increased valuation accuracy from 70% to 95%, reduced operational costs by 17.6%, and decreased maintenance costs by 13.2%. Perhaps most notably, energy savings have reached 14% while maintaining a high resident satisfaction rate of 91%.
“AI is not just a tool for efficiency; it’s a catalyst for sustainable and profitable building operations,” Emedo said. “The integration of AI technologies is reshaping the real estate sector, making it more responsive to environmental and economic demands.”
The review also identified critical implementation barriers, including data quality challenges, algorithmic bias risks, substantial upfront investments, and skills gaps. Despite these hurdles, the potential benefits are substantial. Ensemble machine learning techniques, for instance, achieve 85–100% accuracy in energy forecasting, and IoT-integrated predictive maintenance systems extend equipment lifespan by 25–30%.
Emedo emphasized the importance of addressing ethical considerations around privacy, transparency, and fairness. “As we integrate AI into our buildings and operations, we must ensure that these systems are fair, transparent, and respectful of privacy,” she noted. “This is not just about technological advancement; it’s about responsible innovation.”
The study contributes novel insights into the economic-environmental nexus of AI adoption, demonstrating that sustainable building operations and profitability are not mutually exclusive but rather synergistic outcomes of intelligent system integration. As the real estate sector continues to evolve, AI-driven transformations are likely to shape future developments, making buildings smarter, more efficient, and more sustainable.
For professionals in the energy sector, these findings underscore the potential of AI to drive significant cost savings and environmental benefits. By leveraging AI technologies, building operators can achieve remarkable improvements in energy efficiency, reduce operational costs, and enhance tenant satisfaction. The integration of AI into smart buildings is not just a trend; it’s a transformative shift that is here to stay.